Minister of state for finance and planning, Ravindra Mane, and finance secretary Ravi Buddhiraja confirmed the lapse in the presentation of taxation bill during the session. Buddhiraja said the bill could not be formulated and tabled due to various other bills.

"It was our endeavour to present the taxation bill during the session. However, an ordinance will be issued within a week," he told The Financial Express, adding that the government had faced a similar situation in 1996.

Leader of opposition in the state council, Chhagan Bhujbal, and Congress legislator from the state council, Dilip Valse-Patil, have criticised the state government for its failure saying that top priority shouldhave been given to the taxation bill.

Finance minister, Mahadev Shivankar, had told reporters after presenting the annual budget on March 23 that the government would present the taxation bill during the budget session. He had then refused to comment on the ways and means to mobilise the additional Rs 600 crore to bring the deficit down to Rs 246.29 crore.

Shivankar had said that there would be a net addition of Rs 200 crore through gearing up of the tax collection machinery during the year and tightening up of various economy measures, especially on the non-plan side. He had hoped that with all these measures, the deficit would be reduced to Rs 46.29 crore which would be uncovered for the present.

Shivankar had proposed levy of sales tax on liquor, including beer served in permit rooms. The rate of tax in four and five star hotels would be 20 per cent while for liquor served in other permit rooms, the applicable rate would be 18 per cent. He had also proposed introduction of a four per cent tax onimported sugar, textile and tobacco, four per cent tax on branded flour, atta and maida, four per cent tax on purchase of capital asset and four per cent tax on sale of lubricating oil.